Hannover Rück (HNR1) Q3 2024 earnings summary

Executive summary

• Operating performance for the first nine months of 2024 was strong, with group net income supported by a one-off tax effect of EUR 120 million in Q3 and all profit engines contributing.

• Nine-month group net income rose 30.4% year-over-year to EUR 1.82 billion, prompting a full-year guidance increase to around EUR 2.3 billion.

• Shareholders' equity increased by 10% to EUR 11.1 billion, with a robust solvency ratio of 260%.

• CEO transition announced: Jean-Jacques Henchoz to step down, Clemens Jungsthöfel to succeed, with a new CFO joining in April.

Financial highlights

• Group net income for nine months surpassed EUR 1.82 billion; full-year target raised to EUR 2.3 billion.

• P&C reinsurance revenue grew by about 10% forex-adjusted to EUR 13.9 billion; combined ratio improved to 87.9%.

• Life and health reinsurance revenue stable at EUR 5.8 billion; EBIT at EUR 716 million.

• Return on investment reached 3.1%, above the 2.8% target.

• Shareholders’ equity grew to EUR 11.1 billion, and book value per share rose to EUR 92.39.

Outlook and guidance

• 2024 group net income guidance raised to EUR 2.3 billion, assuming no major capital market distortions or large losses above EUR 1.825 billion.

• 2025 outlook set at EUR 2.4 billion, with P&C revenue growth expected above 7% and combined ratio targeted below 88%.

• Life and health CSM growth targeted at about 2% for 2025; reinsurance service result expected above EUR 875 million.

• Return on investments expected at least 3.2% in 2025.